Battery price drop to be lynchpin of EV drive

AUTOMAKERS FOCUS ON PRICE PARITY WITH PETROL AND DIESEL VEHICLES

- SANDEEP BUDKI

INDIA'S ELECTRIC VEHICLE (EV) adoption is racing ahead, with over two million EVs sold in FY25—a sixfold jump in just four years. But while sales are surging, their higher upfront purchase price compared with petrol vehicles remains a major deterrent for mass adoption. While the government's support for EVs through their 5% GST rate continues, EV makers can expect growing competition from small petrol and diesel cars with a 10 percentage point reduction in GST rate that will make them more affordable.

Leading automakers are intensifying their efforts to lower EV prices through battery localisation, dedicated platforms, and innovative ownership models. Government incentives and subsidies are also playing a big role in reducing the upfront cost of EVs.